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Futures grid and Martingale estimated liquidation price explanation

Last updated: 07/30/2025
The estimated liquidation price displayed on the page is the estimated value after the opening direction order is fully executed. Due to system settings and market fluctuations, there may be some differences between the displayed liquidation price and the actual liquidation price. The specific calculation formula is as follows:
       
1.1 How is the estimated liquidation price calculated?
             
  • Long position: Liquidation price = (position value - frozen margin - account remaining margin) / ((current number of contracts + pending number of contracts in the same direction) * contract multiplier * (1 - side * maintenance margin rate - side * liquidation fee rate * (1 + tax rate)))
    
  • Short position: Liquidation price = (position value - frozen margin - account remaining margin) / ((current number of contracts + pending number of contracts in the same direction) * contract multiplier * (1 - side * maintenance margin rate - side * liquidation fee rate * (1 + tax rate)))
      
  • side = 1 for long; side = -1 for short
         
1.2 Displayed liquidation price (including Buffer coefficient)
     
To prevent drastic market fluctuations from causing users to not have enough time to supplement margin, the system will apply a ±2% Buffer coefficient to the calculated liquidation price, making the displayed liquidation price more conservative than the actual:
  • Long direction (add Buffer value):
         Displayed liquidation price = liquidation price × (1 + 0.02)
  • Short direction (subtract Buffer value):
         Displayed liquidation price = liquidation price × (1 - 0.02)
           
1.3 Example: Long direction
           
Assume parameters
  • Current position value = 10,000 USDT
  • Frozen margin = 500 USDT
  • Available balance = 200 USDT
  • Number of positions + Pending orders = 100 contracts
  • Contract multiplier = 0.001
  • Maintenance margin rate = 0.5% (0.005)
  • Liquidation fee rate = 0.05% (0.0005)
  • Tax rate = 0%
  • Buffer coefficient = 2% (0.02)
         
Calculation steps
  1. Calculate the basic liquidation price (without Buffer)
  2. Liquidation price = 10,000 - 500 - 200100 × 0.001 × (1 - 0.005 - 0.0005) = 9,3000.09945 ≈ 93,523.38 (USDT)
  3. Apply Buffer coefficient (+2%)
Displayed liquidation price = 93,523.38 × (1 + 0.02) = 95,393.85 (USDT)
      
Conclusion
  • Without Buffer: Liquidation price ≈ 93,523.38 USDT
  • With Buffer: Displayed liquidation price ≈ 95,393.85 USDT (2% higher than actual to prevent early liquidation)
  • Benefits of adding buffer: After adding the Buffer coefficient, the system will provide you with more ample margin replenishment time, effectively reducing the risk of liquidation due to short-term market fluctuations or operational delays.
     
       
1.4 Important Notes
           
  • This liquidation price explanation is only applicable to futures grid and futures Martingale
  • The displayed liquidation price is an estimated reference value; the actual liquidation price may vary due to market fluctuations, changes in funding fees, etc.
  • It is recommended to regularly monitor positions and set reasonable stop-losses.